A recent study by Investopedia found that a common worry for folks these days is their ability to retire. The survey found that although many people feel like they understand their finances, they are still concerned about setting themselves up to transition into retirement.[1]
These numbers are significant. They mean that even if you feel like you are doing what you can to save for retirement and maintain quality of life throughout retirement, you aren’t confident that is enough to help you achieve your retirement goals.
Some people expect to support themselves by utilizing Social Security and/or 401(k) plans, but there is a concern that Social Security may not cover as much as was promised by the time retirement is a reality. This is also concerning for many who may have hit a road bump in their retirement savings journey and planned to lean on Social Security to help them achieve their retirement.[2]
Overall, retirement is all about finding consistent ways to minimize and cover your expenses and replace that paycheck. Even if you were careful with your finances, you may still feel like you have not saved enough to stop working. So what can you do? How do you know if you have enough?
First: try to budget as accurately as you can what you think your expenses will be. This can at least give you a sense of how much you’ll need month to month, and it will give you something to compare to your savings.
Next: try researching income generation tools and options for you. You may realize that, while not ideal or risk-free, there are options out there that can provide you with the stable income needed to help achieve the retirement you’re working so hard to achieve.
Lastly, but importantly: talk to a financial advisor. Retirement is a huge topic with so many technical terms and surprising pitfalls that it can be helpful to have someone guide you through the process. You might be surprised to learn that retirement isn’t just about hitting a particular goal… there are plenty of ways to cover your expenses; it just depends on sticking to the right plan.
By talking with a financial advisor, you may find that you’re more prepared than you thought for retirement, or you may walk away with a plan for how to help improve your situation. If you’re looking for a guide to your retirement, feel free to click here to reach out to us and schedule a complimentary review of your financial situation.
